Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Finance Mcqs

An interest rate which is used in calculation of cash flows of bonds is called______________?

An interest rate which is used in calculation of cash flows of bonds is called______________?

A. Required rate of redemption
B. Required rate of earning
C. Required rate of return
D. Required option

An interest rate which is used in calculation of cash flows of bonds is called______________? Read More »

Bonds and Bond Valuation, Finance Mcqs, Financial Management Mcqs

If market interest rate rises above coupon rate, then bond will be sold_____________?

If market interest rate rises above coupon rate, then bond will be sold_____________?

A. Equal to return rate
B. Seasoned price
C. Below its par value(Correct)
D. Above its par value

 

If market interest rate rises above coupon rate, then bond will be sold_____________? Read More »

Bonds and Bond Valuation, Finance Mcqs, Financial Management Mcqs

Type of bonds that are issued by foreign governments or foreign corporations are classified as__________?

Type of bonds that are issued by foreign governments or foreign corporations are classified as__________?

A. Zero risk bonds
B. Zero bonds
C. Foreign bonds(Correct)
D. Government bonds

 

Type of bonds that are issued by foreign governments or foreign corporations are classified as__________? Read More »

Bonds and Bond Valuation, Finance Mcqs, Financial Management Mcqs

Yield of interest rate which is below than coupon rate, this yield is classified as_________?

Yield of interest rate which is below than coupon rate, this yield is classified as_________?

A. Yield to maturity
B. Yield to call(Correct)
C. Yield to earning
D. Yield to investors

 

Yield of interest rate which is below than coupon rate, this yield is classified as_________? Read More »

Bonds and Bond Valuation, Finance Mcqs, Financial Management Mcqs

An effect of interest rate risk and investment risk on a bond’s yield is classified as_________?

An effect of interest rate risk and investment risk on a bond’s yield is classified as_________?

A. Reinvestment premium
B. Investment risk premium
C. Maturity risk premium
D. Defaulter’s premium

An effect of interest rate risk and investment risk on a bond’s yield is classified as_________? Read More »

Bonds and Bond Valuation, Finance Mcqs, Financial Management Mcqs

Coupon payment is calculated with help of interest rate, then this rate considers as________?

Coupon payment is calculated with help of interest rate, then this rate considers as________?

A. Payment interest
B. Par interest
C. Coupon interest
D. Yearly interest rate

Coupon payment is calculated with help of interest rate, then this rate considers as________? Read More »

Bonds and Bond Valuation, Finance Mcqs, Financial Management Mcqs